Ptc Inc. · NASDAQ:PTC
Ptc — Investor Presentation (March 2020)
17 slides from Ptc's investor presentation, Mar 10, 2020
Slide 1: Business Model Review
BUSINESS MODEL REVIEW
Slide 2: Safe Harbor Statement
@ptc SAFE HARBOR STATEMENT This presentation includes forward looking statements regarding PTC's future financial performance and expectations, including the expected resilience of its subscription business Model, as well as about the development of products and markets, which are based on current a
Slide 3: Highlight the expected durability of our business model
@ptc Highlight the expected durability of our business Purpose model in light of the near term global macroeconomic environment
Slide 4: Operating Measures
OPERATING MEASURES @ptc We provide operating measures to supplement our GAAP financial results. These measures are not a substitute for our GAAP financial results and should be used in conjunction with our GAAP financial statements. ‘ARR, as revised for FY'20 and used in this presentation, represent
Slide 5: Observations on Q2'20
OBSERVATIONS ON @2'20 @ptc + There has been no material disruption to our business quarter-to-date, although we are seeing signs of softness in smaller pockets of our business, most notably in the airline and retail space. + Even if we didn't book any additional new business this quarter, Q2 ARR wou
Slide 6: Scenarios
@ptc SCENARIOS
Slide 7: Attractive Range of Outcomes in FY'24
ATTRACTIVE RANGE OF OUTCOMES IN FY'24! Spe ~$2.4B ~$2.3B ~$2.1B ~$2.0B 17% CAGR 15% CAGR 13% CAGR 12% CAGR Grown Meduct Group? Growin reduc! Group? Grow Product Group? __ Growth Product Group? o Seceeratsriongh20s " Geceleratertomateens "Fz + MCLO:ARRCAGR + Low 30s Now ACV.CAGR + Mids ARR CAGR {Core
Slide 8: Pessimist: FY'20 ARR of ~$1.25B
PESSIMIST: FY'20 ARR OF ~$1.25B @ptc Applying November 2019 investor day assumptions to FY'20 Assumptions New ACV! Core Product Group + Flat YoY CC in fiscal Q2- Q4 New ACV! Growth Product Group + Growing at half the market growth rate for Q2-@4 New ACV! FSG + Declines 5% YoY CC Q2- Q4 Churn + Total
Slide 9: 2009 Redux: FY'20 ARR of ~$1.23B
2009 REDUX: FY'20 ARR OF ~$1.23B Applying November 2019 investor day assumptions to FY'20 ARR Assumptions New ACV" for all Product Groups + Declines 30% YoY CC in fiscal @2 - @4 Chum + Total chum remains flat YoY at ~8%
Slide 10: Questions
@ptc QUESTIONS
Slide 11: Slide 11
Slide 12: Appendix
@ptc APPENDIX
Slide 13: ARR Mechanics — Definitions
ARR MECHANICS — DEFINITIONS @ptc * ARR defined (per Sept 8-K) — ARR represents the annualized value of our portfolio of recurring customer arrangements as of the end of the reporting period, including subscription software, cloud, and support contracts * This was a change from our historical definit
Slide 14: ARR Mechanics — Start Dates
ARR MECHANICS — START DATES $100K ACV booked in Q1 with Q1 start date @ptc $100K ACV booked in Q1 with Q2 start date
Slide 15: ARR Mechanics — Ramp Deals
ARR MECHANICS — RAMP DEALS e * Multi-year agreements with annual committed volume increases + Example of 3-year ramp deal: - Yr, 1 New ACV of $100 ~ Yr. 2 New ACV of $200 ~ Yr. 3 New ACV of $300 + Yr. 1 ARR of $100 with $500 in backlog + Yr. 2 ARR of $300 with $300 in backlog * Yr. 3 ARR of $600
Slide 16: ARR Mechanics — Growth Dynamics
ARR MECHANICS — GROWTH DYNAMICS pte + $500M beginning ARR + $80M New ACV; 5% growth + 5% chum improving 100bps Yields 10% ARR CAGR Me
Slide 17: ARR Mechanics — Growth Dynamics (Con't)
ARR MECHANICS — GROWTH DYNAMICS (CON’T) pte mei em = = — senor ayer Sn + $500M beginning ARR + $80M New ACV; 0% growth + 5% chum improving 100bps Yields 9% ARR CAGR Mu